What does the New York Times have in common with Scientific American and LinkedIn? This feels like the beginning of a bland joke, but there is a precise answer: games. Seeing publishers offering games and secondary digital products is no longer new.
The New York Times has been the pioneer, starting a new revenue source for news media. The publisher is mostly famous for Wordle, but it has also released other digital products, including Cooking, a recipe app.
In 2024 the Guardian launched Feast, a cooking app to rival NYT’s. Right after that, the New York Times took the next step by integrating its own Cooking app with Instacart, allowing users to buy missing ingredients without leaving NYT’s app. This latest feature takes NYT’s digital product even further away from a type of content hub (wrapped in an app format) and turns it into a standalone app with its own functionality.
The trend does not stop there, however. With LinkedIn and Scientific American releasing games, it seems these “secondary” apps are becoming an increasingly vital source of engagement, subscription, and revenue.
The Shift Toward Digital Products
2023 saw the news and media industry take a considerable hit. A radical decline in advertising revenue leading to thousands of tragic lay-offs and a sense of confusion. Although this trend is slowly reversing in 2024, more publishers are trying to make the transition from advertising to different subscription models.
It is in this context that we should understand the launch of secondary products by all types of publishers.
Diversification of Revenue Streams
Digital products offer fresh avenues for revenue through subscriptions and microtransactions. With AI-driven search tools affecting traditional content revenue models, remember Gannett’s closure of Reviewed? Media companies are pivoting. They’re leveraging their trusted brands to create products users are willing to pay for.
Take The New York Times, for example. The company’s apps go beyond its personalized Cooking app. Their puzzle-based Games, including their hit title Wordle, have had miraculous results for the publisher. Games
Enhancing User Engagement
Specialized apps keep users within the media company’s ecosystem longer. NYT’s Cooking and Games apps have significantly boosted daily user interaction. The acquisition of Wordle expanded their gaming portfolio, impacting subscriptions and engagement in a big way.
These digital products are more than just add-ons; they’re strategic tools for increasing engagement and subscription. By offering valuable services tailored to specific interests, media companies deepen audience engagement. Users aren’t just consuming content – they’re interacting with it in meaningful ways. This heightened engagement leads to higher conversion rates down the line and fosters real brand loyalty.
Consider how Wordle brings users back daily. This habitual engagement isn’t just boosting numbers; it’s building a relationship. Users who find consistent value are more likely to explore other offerings and become loyal to your brand.
The strategic value of these digital products is their appeal to a wider demographic than the publisher’s usual audience. Wordle has managed to appeal to a broader audience that may not have been prepared to pay for a NYT subscription otherwise.
While The Economist’s Espresso is not exactly a digital product in the sense we discussed, it also targets a younger audience, specifically students who will then be easier to convert to subscribers in a few years.
By embracing digital products, media companies are not only diversifying their revenue streams but also enhancing user engagement and increasing their demographic in ways that traditional news content can’t achieve on its own.
Audience Segmentation
The New York Times is known for its crossword puzzles, but they are also famous for their difficulty, attracting only a very narrow audience of intellectuals and hardcore crossword enthusiasts. Wordle is different. You don’t have to be a Will Shorts fan to play the game, and the number of engaged users bears that out.
By offering something fun and engaging, NYT has brought new users into its ecosystem. Once there, these users might explore other offerings, from podcasts to opinion pieces.
Similarly, The Guardian’s Feast taps into the interests of food enthusiasts. It’s not political journalism, but it doesn’t have to be. By providing recipes and culinary content, The Guardian adds value and increases overall engagement.
Scientific American’s games have also generated a dedicated, engaged audience for the publisher.
Examples
NYT’s Wordle Acquisition
Remember when Wordle became a daily ritual for millions around the globe? The New York Times recognized the game’s viral appeal and acquired it in early 2022. This wasn’t just a lucky catch; it was a strategic move to expand their digital offerings and tap into a broader audience.
So, how did Wordle expand NYT’s gaming portfolio? By integrating this simple yet addictive word game, the NYT attracted a younger demographic and those who might not have engaged with their traditional news content. Wordle acted as a gateway, introducing users to the NYT’s suite of games like the Crossword and Spelling Bee.
The Guardian’s Feast
Guardian is the latest notable publisher to take up the trend with its cooking app, perhaps inspired by the recent successes of NYT’s apps. Feast offers recipes, food stories, and culinary insights that appeal to both existing readers and new audiences.
By adding a dedicated app that collects all previously published recipes and new ones in one place, The Guardian can tap into a new democratic or at least add another reason for users to pay for a subscription..
LinkedIn’s New Games
LinkedIn has launched its own games, likely hoping for the same positive effects they have had for the NYT. The games are AI-driven and aimed at increasing engagement and session time. The results have not been released as of this writing.
Newsgames Platform
The popularity of digital games, especially puzzles, becomes even more evident if you consider new businesses like Norkon or Newsgames, who offer smaller publishers a chance to create their own version of games like Wordle.
Earlier Examples
- The Guardian: Before creating its recent cooking app (Feast), the Guardian had developed a standalone dating app, titled Soulmates, with in-app purchases.
- VICE: Speaking of romance, VICE launched a romance-themed astrology app titled Astro Guide in 2019, targeting a niche but dedicated audience interested in astrology.
The Challenges of Creating Secondary Digital Products
Resource Allocation
Developing and maintaining digital products isn’t cheap. It requires time, money, and specialized talent. Balancing these demands with your core journalism efforts can be tough. That is why some publishers choose to partner with digital companies to realize their vision without dedicating their time and expertise.
There’s a risk of spreading yourself too thin. You don’t want to compromise the quality of your news content while chasing new ventures. It’s crucial to find the right balance.
4. Strategic Implications for Media Companies
Monetization isn’t limited to ads anymore. Subscriptions, in-app purchases, and strategic integrations are paving the way for new revenue streams. Partnerships can turn these avenues into real value.
DN’s partnership with Norkon is a perfect example of that. Instead of sinking countless hours into developing games in-house, the North-European publisher partnered with the digital company to create Fantasy Funds, a game based on stocks. The results have been significant.
Working with digital partners like Refact can help you minimize overhead and costs while creating high-conversion products. They bring expertise in technology and user experience, allowing you to focus on what you do best: delivering quality content.
Thinking about your own digital product?
Refact has helped well-known brands like Workweek, Hubspot’s The Hustle, and Stacked Marketer with their websites and digital products. We help our clients optimize conversions through Strategy and Branding as well as Product Development, creating flexible publishing platforms, digital products, and media websites. Our services have been a part of many success stories from major industry brands. Contact us to learn more and discuss how we can help.